AutoZone
| File:AutoZone logo.svg | |
| File:Autozonehqmemphis.jpg Headquarters located in Memphis, Tennessee | |
| Company type | Public |
|---|---|
| Industry | Retail |
| Founded | July 4, 1979 (originally Auto Shack) Forrest City, Arkansas, U.S. |
| Founder | Pitt Hyde |
| Headquarters | Memphis, Tennessee, U.S. |
Number of locations | 7,140 (2023) |
Area served |
|
Key people | Phil Daniele (Chairman, President, & CEO) Jamere Jackson (CFO) |
| Products | Automotive parts and accessories |
| Revenue | Increase Template:US$ (2023) |
| Increase US$3.474 billion (2023) | |
| Increase US$2.528 billion (2023) | |
| Total assets | Increase US$15.99 billion (2023) |
| Total equity | Decrease US$–4.35 billion (2023) |
Number of employees | c. 119,000 (August 2023) |
| Website | autozone |
AutoZone, Inc., commonly known as AutoZone, stands as the foremost American retailer specializing in aftermarket automotive parts and related accessories. Established in 1979 by entrepreneur Pitt Hyde, the enterprise manages a network of 7,140 outlets spanning the United States, Mexico, Puerto Rico, Brazil, and the U.S. Virgin Islands. The company’s main office is situated in Memphis, Tennessee.
Auto Shack
The origins of AutoZone trace back to its initial identity as Auto Shack, which commenced operations on July 4, 1979, in Forrest City, Arkansas. Founded by J.R. "Pitt" Hyde III with the intent to expand beyond his family’s wholesale grocery firm Malone & Hyde, Hyde emphasized exceptional customer service and affordable pricing within stores that were clean and well-lit despite his limited expertise in automotive products. The debut store achieved $300 in sales on its first day.
By 1980, Auto Shack had grown to eight locations across five states and expanded further to 20 stores by the next year. In 1981, the company established its first Express Parts Service warehouse in Memphis to facilitate access to difficult-to-source components. Growth continued rapidly; by 1983 the chain reached 100 stores and by 1984 operated 190 outlets across thirteen states.
In 1984, Malone & Hyde underwent a management buyout involving Hyde alongside Kohlberg Kravis Roberts & Company, transitioning the business into private ownership which included Auto Shack’s operations. Peter Formanek was appointed president in 1985 to manage daily operations and drive expansion efforts.
Two years later in 1986, Auto Shack was separated from Malone & Hyde with Hyde and Formanek retaining leadership roles. The company introduced its proprietary Duralast line of auto parts beginning with alternators and starters and also launched the Loan-A-Tool program offering specialty tool rentals. At that time, Auto Shack operated 339 stores across fifteen states supported by four distribution centers.
AutoZone
After a trademark dispute with Radio Shack in 1987, Auto Shack rebranded itself as AutoZone. The inaugural AutoZone location was launched in Enid, Oklahoma. The company rolled out an electronic catalog system to facilitate parts identification, warranty verification, and inventory checks. At that time, AutoZone operated 459 outlets spanning 16 states.
1990s
In 1991, founder Pitt Hyde partnered with Kohlberg Kravis Roberts (KKR) to take AutoZone public on the New York Stock Exchange under the ticker symbol "AZO." KKR initially maintained majority ownership but began reducing its stake by 1993. By 1994, the company’s revenue had climbed to $1.5 billion, supported by satellite communication systems connecting all stores to corporate headquarters.
Throughout the 1990s, AutoZone experienced rapid growth. The company celebrated the opening of its 1,000th store in Louisville, Kentucky in 1995 and introduced the Duralast battery brand. By this point, it operated 1,143 locations across 26 states. In 1996, AutoZone launched its official website and acquired ALLDATA, a software company specializing in automotive diagnostic solutions, for $56 million.
Founder Pitt Hyde stepped down as chairman and CEO in 1997, with John Adams taking over leadership. Under Adams’ direction, AutoZone aggressively expanded through acquisitions: in 1998 it acquired 112 Auto Palace stores for $55 million, added 43 TruckPro outlets and 560 Chief Auto Parts locations, and purchased 100 Express auto parts stores from Pep Boys.
AutoZone also ventured internationally by opening its first store in Nuevo Laredo, Mexico toward the end of 1998, with further expansion plans announced early the following year. The decade concluded with AutoZone entering the Fortune 500 list in 1999, underscoring its substantial growth and industry presence.
2000s
In 2000, AutoZone founded DataZone—a data processing and support hub based in Chihuahua, Mexico—which later expanded to incorporate Finance, Customer Service, IT, Merchandising, and Store Technical Support functions.
Steve Odland was named chairman and CEO in January 2001. By May of that year, AutoZone celebrated the opening of its 3,000th store located in Cicero, Illinois. In December 2001, the company divested its TruckPro division to Paratus Capital Management.
By 2002, AutoZone implemented a "hub, feeder, and satellite" store distribution model to improve inventory management and market coverage, achieving $5.33 billion in sales. The following year saw the introduction of the Duralast tool product line and AutoZone becoming Midas’s official parts distributor after Midas exited that segment. The Mexican division opened its first distribution center in Nuevo Laredo. At this time, store count reached 3,219 across 48 U.S. states and included 49 locations in Mexico.
In April 2004, AutoZone expanded by acquiring 12 stores from ABC Discount Auto Parts. That same year saw founder J.R. "Pitt" Hyde III honored with induction into the Automotive Hall of Fame.
William C. Rhodes III took over as president and CEO in 2005 when Odland transitioned to Office Depot. During this period, AutoZone entered the Puerto Rican market by opening a store in Bayamon.
By June 2007, Rhodes also assumed the role of chairman. The company marked the launch of its 4,000th store in Houston, Texas and introduced Z-net—an electronic parts catalog and repair database designed to replace its original text-based system—aimed at improving customer service and operational efficiency.
2010s
In May 2010, AutoZone introduced its “Buy Online Pick-Up In-Store” option. The next month, it launched a mobile application for iPhone users that provided vehicle repair instructions, product listings, pricing details, and store locator features. On December 15, 2011, ALLDATA LLC, an operating division of AutoZone, expanded its Canadian operations to better serve its increasing clientele.
AutoZone made its debut in Alaska, the 49th state in its network, by inaugurating its 5,000th store in Wasilla, Alaska on August 17, 2012. Later that year in December, the company enhanced its online retail presence by acquiring AutoAnything.com. Additionally, 2012 marked AutoZone’s entrance into the Brazilian market with the opening of a location in Sao Paulo.
In 2014, AutoZone purchased Interamerican Motor Corporation (IMC), a distributor specializing in imported replacement parts, thereby gaining access to European and Asian markets. By November 2015, the company had upgraded several hub stores to mega hubs situated in Atlanta, Chicago, Los Angeles, Memphis, and New Jersey.
Between 2012 and 2016, AutoZone’s stock price experienced a twofold increase. By April 2017, it had maintained its position as North America’s largest automotive parts retailer for three straight years. As of August 2017, AutoZone operated a total of 6,035 stores: 5,465 across the United States, 524 in Mexico, and 46 in Brazil. The milestone 6,000th store was launched in Memphis during that same month.
In February 2018, AutoZone divested IMC to Parts Authority and sold AutoAnything to Kingswood Capital. That September saw the rollout of next-day home delivery services for online purchases across 83 U.S. markets featuring over 100,000 products; this service expanded to cover 95 markets by year-end. On October 22, 2018, founder Pitt Hyde resigned from the board of directors. By June 2019, AutoZone managed 174 hub stores along with 28 mega hubs and continued plans for further expansion.
2020s
During March 2020 and amid the COVID-19 pandemic, AutoZone implemented complimentary curbside pickup for all online orders. In May of that year, two locations were destroyed by arson amid the George Floyd protests in Minneapolis–Saint Paul. By September 2021, the company operated 58 mega hubs and aimed to increase this number by another 20 within the following year.
In 2023, AutoZone rebranded its DataZone shared services division as the AutoZone Business and Technology Store Support Center. In June of that year, CEO William Rhodes announced his intention to step down in January 2024; Phillip Daniele was promoted to president and CEO while Rhodes remained as executive chairman. By May 2024, the mega hub network had expanded beyond 100 sites to improve store replenishment and fulfillment efficiency.
Corporate affairs
AutoZone is registered as a corporation in Nevada.
Headquarters
Since October 1995, AutoZone's main offices have been housed in the J.R. Hyde, III Store Support Center (SSC), an eight-story building covering 270,000 square feet located in Downtown Memphis, Tennessee. As of 2013, more than 1,200 employees were based there. The facility is equipped with a $950,000 base isolation system designed to endure earthquakes measuring up to magnitude 9.0.
Private labels
AutoZone's lead-acid automotive batteries are chiefly produced by Johnson Controls and sold under its exclusive Valucraft and Duralast brand names. The company also retails a variety of automotive tools bearing the Duralast label.
Retail stores
By August 2023, AutoZone maintained 7,140 company-owned retail locations throughout the United States, Mexico, and Brazil. These outlets carry an extensive selection of aftermarket parts as well as certain original equipment manufacturer (OEM) components.
Sponsorships
In celebration of its 25th anniversary in 2004, AutoZone entered into a sponsorship agreement with NASCAR. The company has supported drivers including Kevin Harvick and Timothy Peters in the NASCAR Busch Series.
AutoZone holds the naming rights for AutoZone Park, situated in downtown Memphis and serving as the home field for the Memphis Redbirds baseball team. The company is also a sponsor of the AutoZone Liberty Bowl college football game, which has donated over $250,000 to St. Jude Children's Research Hospital. In 2018, the Liberty Bowl honored Priscilla Presley with its Distinguished Citizen Award.
Moreover, AutoZone serves as an official sponsor for Bellator MMA, recognized as the second-largest mixed martial arts organization worldwide.
Lawsuits
In 2005, AutoZone resolved a legal dispute with prosecutors from multiple California counties by agreeing to a $1.5 million settlement concerning allegations of improper handling of used motor oil and customer overcharging.
A prominent gender discrimination case culminated in a 2014 jury verdict awarding $185 million in punitive damages and roughly $873,000 in back pay to a former employee who claimed she was demoted and terminated after becoming pregnant. AutoZone declared its intention to appeal the decision, with industry analysts anticipating a potential reduction in the award.
In 2018, the company settled a wrongful death lawsuit linked to a 2016 truck accident by paying $3.3 million; the suit involved accusations of insufficient driver training.
That same year, a Georgia-based employee initiated a civil rights lawsuit after dismissal following an incident involving racial abuse from a customer, alleging inadequate corporate response.
In June 2019, AutoZone agreed to pay $11 million to settle claims brought by California authorities regarding violations of hazardous waste regulations, including unauthorized disposal of used motor oil and automotive fluids at non-permitted landfill sites.
See also
- Advance Auto Parts
- Carquest
- National Automotive Parts Association (NAPA)
- O'Reilly Auto Parts
- Pep Boys
- SCO v. AutoZone
External links
- Pages with broken file links
- Automotive part retailers of the United States
- Companies based in Memphis, Tennessee
- American companies established in 1979
- Retail companies established in 1979
- 1979 establishments in Arkansas
- Companies listed on the New York Stock Exchange
- 1991 initial public offerings
- 5
- Companies of the United States by year of establishment